Subchapter C. ACCOUNTS AND RECORDS
63.31. Classification of public utilities.
63.32. Systems of accounts.
63.33. Integrity of reserve accounts to be preserved.
63.34. Reclassification of telephone plant to original cost.
63.35. Preservation of records.
63.36. Filing of annual financial reports.
63.37. Operation of the Telecommunication Relay Service System and Relay Service Fund.
§ 63.31. Classification of public utilities.
For accounting and reporting purposes, telephone public utilities are classified as follows:
(1) Class A. Telephone public utilities that are incumbent local exchange carriers subject to an alternative form of regulation, including, but not limited to, price cap formulas, under 66 Pa.C.S. Chapter 30 (relating to alternative form of regulation of telecommunications services).
(2) Class B. Telephone public utilities that are incumbent local exchange carriers subject to rate base/rate of return regulation or the Plan B Simplified Ratemaking Plan approved by the Commission under 66 Pa.C.S. Chapter 30.
(3) Class C. Telephone public utilities that provide competitive local telephone exchange services and that are not the incumbent provider in any local exchange area within this Commonwealth.
The provisions of this § 63.31 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 504506, 1301 and 1501.
The provisions of this § 63.31 adopted March 25, 1946; amended through June 30, 1969; amended July 17, 1998, effective July 18, 1998, 28 Pa.B. 3394; amended April 5, 2002, effective April 6, 2002, 32 Pa.B. 1723. Immediately preceding text appears at serial page (246453).
§ 63.32. Systems of accounts.
(a) Class A and Class B telephone public utilities shall keep their accounts in conformity with the requirements prescribed by the Federal Communications Commission (FCC), under Common Carrier Services; Revision; Uniform System of Accounts (USOA); Classes A, B, and C Telephone Companies, 51 Fed. Reg. 43498 (December 2, 1986) (to be codified at 47 CFR Part 32). The symbol 32 which forms the initial component of each account number in the system of accounts, as published, may not be considered as a prescribed part of the account number for accounting and reporting purposes.
(b) A Class C telephone public utility which is not required by the FCC to conform to the USOA and does not do so, shall inform the Commission of this fact on its annual financial report. The Class C utility shall also state the method of accounting utilized to compile the financial information reported, including the Generally Accepted Accounting Principles (GAAP).
The provisions of this § 63.32 amended under the Public Utility Code, 66 Pa.C.S. § § 501, 1501 and 1701.
The provisions of this § 63.32 adopted March 25, 1946; amended through June 30, 1969; amended December 18, 1987, effective January 1, 1988, 17 Pa.B. 5253; amended April 5, 2002, effective April 6, 2002, 32 Pa.B. 1723. Immediately preceding text appears at serial pages (246453) to (246454).
§ 63.33. Integrity of reserve accounts to be preserved.
With respect to those companies which keep their accounts in conformity with the requirements prescribed by the Federal Communications Commission under the Common Carrier Services; Revision; Uniform Systems of Accounts (USOA); Classes A, B and C Telephone Companies, 51 FR 43498 (December 2, 1986) (to be codified at 47 CFR Part 32), amounts in Class A and Class B accounts 169173 inclusive, and in Class C accounts 185 and 190, reserved as of the effective date of the appropriate system of accounts prescribed in § 63.32 (relating to systems of accounts), may not, except by permission of the Commission, be used for any purpose other than the specific purpose for which reserved.
The provisions of this § 63.33 amended under the Public Utility Code, 66 Pa.C.S. § § 501 and 1501.
The provisions of this § 63.33 adopted March 25, 1946; amended through June 30, 1969; amended April 5, 2002, effective April 6, 2002, 32 Pa.B. 1723. Immediately preceding text appears at serial page (246454).
§ 63.34. Reclassification of telephone plant to original cost.
Before making entries in its books of account to reclassify its telephone plant to original cost when first devoted to the public service, as required by the text of accounts 100:1, 100:2, 100:3, 100:4 and 100:7 of the uniform accounting system prescribed by § 63.32 (relating to systems of accounts), each telephone public utility subject to such system of accounts shall submit to the Commission, for approval, a draft of the entries which it proposes to make accompanied by all of the following data, sworn to or affirmed by the officer of the utility responsible for the preparation of such entries:
(1) Statement A. Statement A shall be a comprehensive statement of the procedures and methods followed by the utility in the determination of the original cost of its telephone plant at the effective date of the uniform accounting system prescribed by § 63.32. If procedures or methods or both differed with respect to classes of plant, such differences should be set forth clearly.
(2) Statement B. Statement B shall be a comprehensive index for the utility and for each of its predecessors of ledgers, journals and other books of account, of vouchers, work orders, contracts covering the purchase or construction of utility plant, time reports, payrolls and summaries and other original records which are the sources of entries in the books of account for telephone plant transactions and relevant reserves, and of other books and memoranda, such as minute books, operating maps and records, and similar items, which may be useful in the establishment of the historical development of the telephone plant and related reserves of the company. With the exception of mass recordssuch as material tickets, vouchers, work orders, time reports, payrolls, and similar itemsthe index shall describe each record, indicate the period covered by it, show the physical location of it, and give the name of the person in charge of it. For mass records, the index shall be so prepared to show, for each type record, the periods covered thereby at each location and identified, as appropriate, by the first and last serial number of the record for each period.
(3) Statement C. Statement C shall be an outline of the origin and the development of the utility, including a description of each consolidation and merger to which the utility or predecessors were parties, and each acquisition by the utility or by a predecessor of property comprising a substantially complete telephone system, exchange line, or toll line.
(4) Statement D. Statement D shall be a summary by years for the utility and for each of its predecessors of the gross debits and the gross credits to the telephone plant account from the date of origin of the telephone plant of the utility to the effective date of the system of accounts prescribed by § 63.32, setting forth all of the following:
(i) Plant acquired by merger or consolidation.
(ii) Plant constructed by the utility.
(iii) Plant acquired by purchase.
(v) Retirements of the plant which cannot be classified by subparagraphs (i)(iii).
(vi) Balance at the effective date of the system of accounts.
(5) Statement E. Statement E shall be a statement showing the following for each acquisition by the utility or by a predecessorthrough consolidation, merger or purchaseof property comprising a substantially complete telephone system, exchange line, or toll line:
(i) A description of the property acquired.
(ii) The names of parties to the transaction and whether the parties were affiliated with each other.
(iii) The date of incorporation of the merged constituent or vendor.
(iv) The date physical property was acquired.
(v) A balance sheet of the predecessor at the date its plant was acquired.
(vi) The book value of the plant acquired, by primary accounts, as recorded by the predecessor or vendor, at the date the physical property was acquired.
(vii) The cost of the plant to the acquirer, and how the cost was determined.
(viii) Entries recording the acquisition.
(ix) The amount recorded by the acquirer in subaccounts of 100:1, Telephone plant in service, of the uniform system of accounts prescribed by § 63.32.
(x) The amount of depreciation reserve applicable to the plant acquired, as shown in the books of account of the predecessor or vendor.
(xi) The adjustment of the depreciation reserve, if any, by the vendee with respect to the plant acquired, and the basis.
(xii) If the capital stock of the predecessor was acquired prior to the acquisition of its property, the date or dates such capital stock was acquired, from whom acquired, the consideration paid, and whether the vendor was an affiliate of the utility or of a predecessor.
(xiii) If the parties referred to in subparagraphs (ii) and (xii) were affiliates, the following additional information shall be furnished:
(A) With respect to subparagraph (ii), the name of the affiliated interest which acquired the property at arms-length, and the consideration paid by it shall be given.
(B) With respect to subparagraph (xii), the name of the affiliated interest which acquired the capital stock at arms-length, and the consideration paid by it shall be given.
(6) Statement F. Statement F shall be a statement for the accounting utility or its predecessors showing any increases in plant accounts resulting from the recording of appraised values. The statement should give the full journal entry together with a comparative balance sheet showing the accounts prior and subsequent to the journal entry at the time the appraisal was recorded.
(7) Statement G. Statement G shall, with respect to increments, that is, differences between paragraph (5) (vi) and (ix) and also the amounts shown by Statement F under paragraph (6) in plant accounts of the utility or its predecessors arising from plant acquisitions or from the recording of appraised values, state the amounts of the increments remaining in the plant account as of the reclassification date.
(8) Statement H. Statement H shall be a statement with detailed accounts showing telephone plant per books as of the date as of which telephone plant will be reclassified to original cost.
(9) Statement J. A statement J shall be a statement, by years of plant installation, of the original cost of the telephone plant proposed to be classified in the subaccounts of account 100:1, Telephone plant in service, of the uniform system of accounts prescribed in § 63.32.
(10) Statement K. Statement K shall be a comparative balance sheet, as of the effective date of the system of accounts, setting forth the accounts and the amounts appearing in the books of account both before entries to adjust the telephone plant to original cost have been made, and to give pro forma effect to the proposals of the utility for adjusting the telephone plant to original cost.
(11) Statement L. Statement L shall be a reconciliation of the book value of the telephone plant immediately before reclassification to original cost (as shown by Statement H in paragraph (8)) and the utility-determined original cost as of the effective date of the system of accounts (as shown in Statement J in paragraph (9)). The reconciliation shall show all adjustments by nature of adjustment in detail.
(12) Statement M. Statement M shall be an analysis of Account 100:4, Telephone plant acquisition adjustment, and of Account 100:7, Telephone plant adjustment, showing character and the basis for computation of each amount included and proposed to be included.
(13) Statement N. Statement N shall be a suggested plan for depreciating, amortizing, or otherwise disposing of, in whole or in part, the amounts included and includible, as of the effective date of the system of accounts, in Account 100:4, Telephone plant acquisition adjustment, and Account 100:7, Telephone plant adjustment, of the uniform system of accounts prescribed by § 63.32.
§ 63.35. Preservation of records.
(a) A telephone public utility shall keep and preserve its records in conformity with Part 45Preservation of Records of Telephone Carriers, adopted by Federal Communications Commission on August 16, 1950 (47 CFR Part 42).
(b) Telephone public utilities which maintain the original cost of their plants in continuing property records which conform with the requirements of the Commission may apply for permission to dispose of books and records related to transactions dated 20 years or more prior to the date of the application.
§ 63.36. Filing of annual financial reports.
Under 66 Pa.C.S. § § 504 and 3301 (relating to reports by public utilities; and civil penalties for violations), the Commission may require a public utility to file certain reports, and invoke penalties for failure to file those reports. In this regard, the following apply:
(1) Unless prior permission to do otherwise is granted, a public utility, other than transportation, subject to the jurisdiction of the Commission, shall file with the Commission annual financial reports by April 30 immediately following the reporting year, for reports based upon the calendar year, and by July 31 immediately following the reporting year for reports permitted to be based upon the fiscal year ending May 31. A request for an extension of time for filing an annual report shall be submitted to the Commission prior to the filing dates specified in this paragraph.
(2) If a public utility, other than transportation, fails to file its annual report in compliance with paragraph (1), the public utility may be subject to a penalty as provided under 66 Pa.C.S. § 3301. Continued failure to file annual reports may result in additional penalties.
The provisions of this § 63.36 amended under the Public Utility Code, 66 Pa.C.S. § § 501 and 504.
The provisions of this § 63.36 adopted March 25, 1946; amended through June 30, 1969; amended May 6, 1988, effective May 7, 1988, 18 Pa.B. 2106. Immediately preceding text appears at serial page (125481).
§ 63.37. Operation of the Telecommunications Relay Service System and Relay Service Fund.
(1) The Pennsylvania Telecommunications Relay Service (TRS), the Telecommunications Devices for the Deaf Program and the Print Media Access System Program are codified in the Universal Telecommunications and Print Media Access Act (35 P. S. § § 6701.16701.4). The Relay Service Fund (Fund) covers eligible intrastate costs associated with the operation of the three programs. The costs are recovered from residential and business wireline access line end-users by a monthly surcharge on local service telephone bills.
(2) To permit the Commission to effectively monitor and evaluate the revenue and cost data associated with the Fund, each local exchange carrier (LEC) shall file an annual tracking report delineating monthly revenues collected and remittances for late payments for the preceding 12-month year and an annual access line summary report detailing its access line count as of December 31 of the preceding year. The tracking data are used for periodic audits of the Fund. The access line counts are used to calculate the next years TRS surcharge.
(b) Timely remittance of revenues.
(1) LECs shall remit the TRS surcharge revenues to the Fund administrator by the 20th of each month for revenues collected during the prior month.
(2) Delays or inaccuracies in remitting revenues to the Fund result in lost earnings by the Fund. An LEC that is late in remitting surcharge revenues shall remit an additional contribution to the Fund to make up for lost Fund earnings. The additional contribution shall be based upon the published prime rate in effect at the time of the missed due date and shall cover the period beginning at the date of the occurrence of the failure to remit and continue until the surcharge revenues are properly remitted to the Fund.
(c) Filing of TRS reports.
(1) Annual tracking report. An LEC shall submit its annual tracking report to the Secretarys Bureau by March 31 of each year, in the format and detail specified on the Commissions web site (www.puc.state.pa.us).
(2) Annual access line summary report. An LEC shall submit its annual access line summary report to the Secretarys Bureau by March 1 of each year, in the format and detail specified on the Commissions web site.
(d) Failure to remit TRS revenues or to file TRS reports. An LEC that fails to timely and accurately submit a tracking report or an access line summary report or that fails to timely and accurately submit TRS surcharge revenues may need to reimburse the Fund under subsection (b). The Commission will utilize all available remedies to ensure reporting and remittance compliance including fines and the revocation of Certificates of Public Convenience.
The provisions of this § 63.37 adopted under the Universal Telecommunications and Print Media Access Act (35 P. S. § § 6701.16701.4).
The provisions of this § 63.37 adopted December 19, 2008, effective December 20, 2008, 38 Pa.B. 6924.
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